Distributed Ledger Technology Adoption and Market Sustainability in an Emerging Capital Market: Evidence from Nigeria

Abstract

Distributed Ledger Technology (DLT) has emerged as a transformative component of blockchain architecture with the potential to modernize capital market infrastructure through enhanced transparency, security and operational efficiency. Despite increasing global adoption of DLT in securities trading, clearing and settlement, empirical evidence regarding its contribution to market sustainability remains limited, particularly within emerging capital markets. Drawing on Diffusion of Innovation Theory, this study investigated the effect of Distributed Ledger Technology on market sustainability in the Nigerian Capital Market. In the methods section, detail the sampling strategy (e.g., random, stratified, purposive) and justify the sample's representativeness of the target population.Describe the sampling technique and provide the breakdown of respondents by stakeholder category. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Reliability and validity tests confirmed the adequacy of the measurement model, while the structural model demonstrated acceptable fit (SRMR = 0.064). Soften the conclusion to reflect the modest effect size, or provide additional evidence (e.g., confidence intervals, practical significance) to support the strength of the claim.The standardized coefficient of 0.25 indicates a moderate effect, suggesting that DLT adoption contributes meaningfully to market sustainability, though other factors account for the majority of variance. The broader blockchain adoption model from which the DLT path was extracted explained 67% of the variance in market sustainability. The study therefore concluded that DLT constitutes a strategic digital infrastructure capable of enhancing transparency and trust, operational efficiency, investor participation and inclusivity, long-term financial stability and market resilience in emerging capital markets. It recommends sustained investment in DLT-enabled market infrastructure, regulatory coordination and stakeholder capacity development to facilitate wider adoption and promote sustainable capital market development.